IRS Releases Plan Limits for 2020

The Internal Revenue Service announced on November 6, 2019 that the contribution limit for employees who participate in 401(k), 457(b) and 403(b) plans is increased from $19,000 to $19,500. The catch-up contribution limit for employees age 50 and over also increased from $6,000 to $6,500.

The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers also increased to $65,000 for married couples filing jointly, up from $64,000; $48,750 for heads of household, up from $48,000; and $32,500 for singles and married individuals filing separately, up from $32,000.

The IRS announced these and other changes in Notice 2019-59 (PDF), posted on IRS.gov.